The Reserve Bank of Fiji (RBF) has issued a warning to the public against using cryptocurrencies for payments or investments. This represents a reversal of the Fijian Prime Minister's perceived stance on cryptocurrencies.
Fiji residents could even face criminal charges for investing in cryptocurrency abroad using "funds held in Fiji," the announcement added . Apparently, the warning was motivated by the promotion of cryptocurrencies in the country:
"RBF Governor, Mr. Ariff Ali, acknowledges that there are indications that there are individuals or entities promoting cryptocurrency investment programs in Fiji. These investment programs are increasingly being promoted through various platforms, including social media.
It was found that the RBF has not licensed any person or entity to provide cryptocurrency investments or trade in virtual assets.
Hopes were high for the adoption of Bitcoin in Fiji after Sitiveni Rabuka, a long-time presence on the Fijian political scene, became prime minister in December 2022. This was largely due to statements made by Tongan Member of Parliament and nobleman of Mata'i'ulua 'i Fonuamotu, Lord Fusitu , who called Rabuka "pro-Bitcoin" in a post on X (then on Twitter) shortly after Rabuka's election. "Let's choose 2 for 2 - legal means of payment of BTC for the Pacific in 2023." - Fusitu'a wrote.
Lord Fusitu'a further explained that Rabuka "asked me to meet with him several times and show him step by step how Fiji can use a legal tender of bitcoin such as Tonga." A comment on Fusitu's post noted that Rabuka has not made any public statements about the use of bitcoin. "I don't think he has been asked about it," Lord Fusitu'a replied.
Lord Fusitu'a has been a vociferous supporter of the introduction of Bitcoin in 2022, in terms of the Treasury's conversion to the cryptocurrency. These measures have yet to be implemented in the country.
The new RBF statement follows the International Monetary Fund's (IMF) advice on cryptocurrencies. In February, the IMF published a paper on the use of digital money in Pacific Island countries, in which it called cryptocurrencies "poor substitutes for means of payment and carry additional macroeconomic risks."
